NATIONAL REPORT—There have been some deals going on in Philadelphia. Some properties to note: Pod Hotel, Philadelphia Society Hill and Philadelphia Marriott West.
Meridian Capital Group Arranges $53.5M in Senior, Mezzanine Financing
Meridian Capital Group has arranged $53.5 million in senior and mezzanine financing for the construction of a Pod Hotel in Philadelphia on behalf of Modus Hotels and the Parkway Corporation. The 36-month, non-recourse construction loan was negotiated by Meridian Senior Managing Director Morris Betesh; Director Phil Galligan; and VP Alex Bailkin, who are all based in the company’s New York City headquarters.
RJL Lodging Sells Sheraton Philadelphia Society Hill
RLJ Lodging Trust has sold the 364-room Sheraton Philadelphia Society Hill in Philadelphia for $95.5 million, or approximately $262,000 per key. The transaction sale price represents a 14.7x multiple on the hotel’s 2017 EBITDA and approximately a 5.6% capitalization rate on the hotel’s 2017 net operating income, which excludes planned capital expenditures. The hotel EBITDA margin for the Sheraton Philadelphia was 28% in 2017, below the company’s reported 33.1% EBITDA margin for the year. The hotel’s 2017 RevPAR was $119.12 compared with the portfolio average of $135.82. The Buccini/Pollin Group acquired the property.
Square Mile Originates $40.7M Loan Secured by Philadelphia Marriott West
Square Mile Capital Management LLC has originated an acquisition loan secured by the Philadelphia Marriott West, a 289-key hotel located in Conshohocken, PA. The loan was made to Columbia Sussex Corporation, a privately owned hotel owner and operator based in Crestview Hills, KY. The financing, which was used to acquire the property and fund certain renovations, was arranged by Lawrence Britvan and Matt Jacobs of Hodges Ward Elliot’s New York City office.